What You Need to Know About LTOs

Seasonal or “limited time offer” menu options run rampant in the restaurant and retail industries. A few examples include McDonald’s Shamrock Shake, Taco Bell’s Nacho Fries, and McAlister’s Pecanberry Salad. Operators often use LTOs as a middle-of-the-funnel tool to prompt visitors into becoming buyers.We see them everywhere, but how can restaurants take advantage of these limited-time offers and drive customer traffic?   Why Are LTOs Effective?Let’s take a step back. What is an LTO or limited time offer? Food and Drink Resources defines LTOs as a “special menu item or set of menu items available for a clearly defined short period.” Giving customers a deadline to make a purchase decision forces them to make a purchase decision faster. In marketing terms, LTOs create “scarcity bias” or a belief that they will not be able to purchase that item after the announced deadline. Social media and constant information processing have created a phenomenon known asthe…